Credit card cash withdrawls - Interest charged from day 1

L

landlord

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While looking at my NIB online credit card statement, I noticed that I had been charged 62 Euro interest. I always pay off anything I purchase on my credit card within 2 weeks online to avoid interest charges.
I had assumed that if you take 5,000 Euro from your credit card online and transfer it your current account (which I did), you would have the usual 4-6 weeks to repay it before interest was incurred, just like if you made a retail purchase for 5,000 Euro using your credit card. I phoned NIB visa and was told that if you make a cash withdrawl from your credit card, either in Ireland or on holiday abroad, or transfer money online from crdit card to current account, then interest is incurred from day 1. I queried this with Ulster bank who I have a credit card with too and they gave the same response and said this is normal. Apparently if you top up your credit card (into the black) before you go, you can avoid "most" of the interest charge.
Is this the same for all credit cards??
 
landlord said:
Is this the same for all credit cards??
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Most if not all CCs operate the same way (i.e. charge interest and possibly other fees on cash advances) and how they operate is explained in the terms & conditions of the card agreement and the schedule of charges that apply.
 
landlord said:
While looking at my NIB online credit card statement, I noticed that I had been charged 62 Euro interest. I always pay off anything I purchase on my credit card within 2 weeks online to avoid interest charges.
I had assumed that if you take 5,000 Euro from your credit card online and transfer it your current account (which I did), you would have the usual 4-6 weeks to repay it before interest was incurred, just like if you made a retail purchase for 5,000 Euro using your credit card. I phoned NIB visa and was told that if you make a cash withdrawl from your credit card, either in Ireland or on holiday abroad, or transfer money online from crdit card to current account, then interest is incurred from day 1. I queried this with Ulster bank who I have a credit card with too and they gave the same response and said this is normal. Apparently if you top up your credit card (into the black) before you go, you can avoid "most" of the interest charge.
Is this the same for all credit cards??
Click to expand...

As far as I'm aware all operate on the same basis. My advice don't ever take cash out on your credit card (unless emergency of course), unless, you have lodged to your credit card account first, then as long as the cash withdrawal doesn't put the credit card account in the red there wont be any interest charge. By the way, this is a cheaper option, than using your ATM card to withdrawn cash in a 'non-euro' country (e.g. UK).

Regards,


BM
 
I have an Amex Blue card and have never paid interest on cash advances either inside or outside Eurozone, only the cash advance fee was charged, my bill gets settled by direct debit arrangement so it never misses the payment due date. If you always pay off the bill on time my understanding was no interest applied but if you miss by one day interest is charged back to the date of the transaction. It sounds like you must have missed the due date or do they not have an interest free period for cash advances. That doesn't sound like a good deal if that is indeed the case.
 
AFAIK, with BoI MAstercard/VISA, you pay an up-front cash advance fee, thereafter it's subject to interest like any other transaction, i.e. no interest on the cash advance if you clear the outstanding items by the due date.

I'm open to correction on this as I have only ever withdrawn cash when I've really needed it and, thankfully it has been a few years since I was last in that position.

But, as ClubMan wrote, it is all covered off in the T&Cs.
 
I know AIB starts charging interest on cash advances on credit cards immediately.
 
Seagull are u sure about AIB charging interest immediately? I thought BOI and AIB didn't charge any interest on cash advances once it was paid within so many days of the bill issuing. They do, along with all the others, charge a cash advance of 1.5% which is different.
 
An Amex isn't a credit card so that's not comparing like with like.

I recently fell foul of this with those MBNA cheques they keep sending. I don't have a cheque book...never have. For the rare time I need a cheque I just give my Dad the cash and get him to pay it.
Anyways, my folks were away recently so I used one of those cheques-for 10K! I've never once paid a credit card company interest so you can imagine the shock I got. Interest is calculated from the day you write the cheque with these like a cash advance. I stupidly thought it would just go on my bill and I'd clear it. Idiotic stuff but they don't make it very clear.
Shred these feckin things as soon as you get them!
 
I have AIB card - any cash withdrawals I have made abroad incur a cash advance fee only.
I always pay off card at end of int free period - never had an additional interest charge from day 1 for these withdrawals.

Paddy
 
AIB are introducing interest charges on cash withdrawels on CC from day 1 shortly if they have not already done so. I got something about it with one of my recent bills. That annoys me as it was a great facility while abroad.
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You are right niceoneted - I remember now I got the same notice, informing me that AIB will start to charge int on cash advances from day one. Presume it kicked in from Jan 01.

In which case, I get no benefits, so I now am off to the CC that gives piggypoints...

Paddy
 
One way to avoid interest when abroad is to preload your cc with cash before you travel. However the downside of that is that the usual protection the bank gives you in the event of the card being stolen and misused does not apply to the preloaded cash.
 
HighFlier said:
One way to avoid interest when abroad is to preload your cc with cash before you travel. However the downside of that is that the usual protection the bank gives you in the event of the card being stolen and misused does not apply to the preloaded cash.
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I thought I was doing great by loading my visa card before going abroad, I did not use card at all (had enough cash) so went to bank at home to withdraw €1000 and was told it would cost me €22 to take out my own money
 
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